Australia’s business finance solutions provider, Earlypay, introduced the country’s first AI-powered Low Doc Invoice Finance product which provides pre-approval in as little as two hours to assist businesses to tap into their customer invoices to improve cash flow. Earlypay launched the product this month and is already experiencing high levels of enquiry.
How can businesses stay afloat in economic downturn?
According to Lee Trego, Head of Growth for Earlypay, businesses are facing an unprecedented maelstrom of late payers, rising interest rates, supply chain delays, soaring costs of doing business, labour and skills shortages and global market volatility.
“Despite the issues businesses are facing, Australia’s economy is still strong however businesses need help to sure up cash flow during these unprecedented and volatile times. Our new Low Doc Invoice Finance product will enable more businesses to access the financial assistance they need without being forced to jump through undignified and time intensive hoops simply to unlock funds from their own invoices,” Lee Trego commented.
“Many businesses don’t want to take out loans, or their credit score has been badly affected by the pandemic that they are unable to secure financing. This is where Invoice Finance becomes the start performer for businesses that need to get funds in the door quickly.”
“Invoice Finance enables businesses to unlock the equity in their unpaid invoices in order to generate upfront payments. The only collateral that is used as part of the process is the invoices themselves. Business owners don’t need to put up the house or give away equity. Invoice Finance is even ideal for businesses with tax debts or other trading challenges. Our new Low Doc Invoice Finance product will now assist even more businesses.”
What is the product offering of Earlypay’s Low Doc?
Earlypay’s Low Doc cash flow solution enables businesses to unlock cash from customers’ unpaid invoices within 24 hours. In addition to speed of access the new solution provides businesses with the ability to access up to $500,000 with minimal information required.
“Given the pressures faced by sectors, we are offering industry-specific automatic pre-approval. These industries include manufacturing, transport, wholesale, recruitment, equipment hire and security services. These industries are in need of support to help them deal with urgent cash flow issues and an unprecedented rise in late payments,” Trego added.
“A recent report by Xero has highlighted that late payments are continuing to blow out across the country. On average over 50% of all invoices sent by businesses to customers are being paid late by an average of 23 days. For some industries, these figures are much worse.”
“While bigger businesses have the capacity to soak up these late payments, small businesses with lower cashflow do not and as a result they urgently need assistance to deal with the challenges being thrown at them. Debtor management is a time intensive activity and one that needs to be undertaken with courtesy. This is the other benefit of Invoice Finance.”
“Not only does it get cash in the door fast, it also takes burdensome debt collection activities off the hands of businesses so they can focus on delivering and growing their business.”
How else is Earlypay planning to support businesses?
Trego also explained that given the rise in demand for multi-product finance solutions, Earlypay will now exclusively offer Equipment Finance alongside cash flow lending solutions.
“This will enable us to help more businesses with more flexible solutions across our suite of offerings. It is clear from our clients both solutions support sustained business growth.”
Trego states that the COVID-19 pandemic has created an extraordinary and unusual set of trading circumstances for businesses and that it will be the businesses that act quickly to sure up cash flow that maintain a healthy business and succeed over the next 24 months, and be well prepared should the world be impacted by any further black swan events.